Aston Martin says it is in talks for potential funding to boost liquidity
Ongoing Financing Discussions and Company Strategy
July 17 (Reuters) - Luxury carmaker Aston Martin said on Friday it has ongoing discussions with potential financing providers, following a media report that it is in talks with lenders including BlackRock-owned HPS Investment Partners.Here are some details:
Capital Structure and Liquidity Focus
• The company said it regularly considers its capital structure and strategic options and remains focused on ensuring enough liquidity to support its strategy.
Market Reaction
• Shares of London-listed Aston Martin were down 2.3% at 36.2 pence at 15:08 GMT.
Media Reports and Lender Talks
• The statement was in response to a Bloomberg News report earlier on Friday that said Aston Martin was in talks with lenders including HPS.
Proposed Financing Structure
• The report said the proposed financing would be backed by company assets transferred beyond the reach of existing creditors through a "drop-down" transaction.
Responses from Lenders
• HPS did not respond to a Reuters request for comment. It had declined to comment to Bloomberg News.
Financial Challenges and Previous Funding
Cash Burn and Sales Decline
• The carmaker has been struggling with cash burn and falling sales due to U.S. tariffs and weak demand in China. It posted another quarterly loss in April.
Recent Funding Initiatives
Consortium-led Funding
• The same month, Aston Martin had turned to a consortium led by top shareholder Lawrence Stroll for a £50 million ($67.2 million) funding boost to take liquidity at the end of the March quarter to £230 million.
($1 = £0.7446)
(Reporting by Neeshita Beura and Roshni Srivastava in Bengaluru, additional reporting by Nithyashree R B; Editing by Sahal Muhammed)
